Bittensor (TAO) has extended its bearish decline for a fourth consecutive day, dropping over 5% in value and signaling a strengthening of negative market control. At the time of reporting, TAO was trading at $174.2, representing a 5.25% loss in just over 24 hours. Despite the price fall, market participation surged, with trading volume jumping 15% to $117.50 million. This increase in volume during a price decline typically indicates active trader engagement with the prevailing downtrend, reinforcing the bearish outlook.
Technical analysis points to a potential further decline of approximately 18%, with a key support target identified around the $144 liquidity level. This projection is based on TAO's failure to reclaim the crucial $207 resistance level, which it broke below on January 31, 2026. The asset's recent price reversal occurred near the 0.618 Golden Fibonacci level, adding to the technical bearish case. The Average Directional Index (ADX), a measure of trend strength, registered at 33.62, well above the key threshold of 25, indicating strong directional momentum for the current move.
Market sentiment presents a mixed picture. Derivatives data from Coinglass shows a bearish bias among leveraged traders. At critical price levels of $170.8 (downside) and $181.3 (upside), traders have built $2.65 million worth of short leveraged positions compared to $1.89 million in long positions. Conversely, data from CryptoQuant's 90-day Spot Taker Cumulative Volume Delta (CVD) tells a different story, showing consistent green bars over the past week. This suggests that aggressive buyers in the spot market are actively absorbing selling pressure, even amid price fluctuations between $170 and $195.
In summary, Bittensor is at a technical crossroads. The macro structure remains bearish as long as the price stays below the $207 level. Traders are advised to monitor price action closely, as a failure to stage an immediate recovery could validate a move toward the lower $144 support target.
